Pushpa Gupta & Ors vs Munna Lal & Ors
2012 Latest Caselaw 3436 Del

*        IN THE HIGH COURT OF DELHI AT NEW DELHI

                                       Date of decision: 22nd May, 2012
+        MAC.APP. 391/2012

         PUSHPA GUPTA & ORS                      ..... Appellant
                      Through:          Mr. Manish Mannie, Advocate

                     versus

         MUNNA LAL & ORS                      ..... Respondent
                      Through:          Mr. D.K. Sharma, Advocate for
                                        R-3.

         CORAM:
         HON'BLE MR. JUSTICE G.P.MITTAL

                              JUDGMENT

G. P. MITTAL, J. (ORAL)

1. The Appeal is for enhancement of compensation of ` 39,35,800/- awarded for the death of Anil Kumar Gupta who died in a motor accident which occurred on 04.07.2010.

2. It is urged by the learned counsel for the Appellants that the deceased was working as a Farm Technician in Indian Agricultural Research Institute, Pusa, New Delhi. He was a meritorious employee and had very good future prospects. The Claims Tribunal erred in making lumpsum calculation towards the income tax. Future prospects ought to have been granted more than 30% as this would fall under an exception to Sarla

Verma (Smt.) & Ors. v.Delhi Transport Corporation & Anr., (2009) 6 SCC 121.

3. The deceased was in settled Govt. employment and considering his age to be less than 44 years, he was entitled to addition of 30% towards the future prospects.

4. I do not find any extraordinary circumstance so as to deviate from the principle as laid down in Sarla Verma (supra). I would agree with the learned counsel for the Appellants that the deduction towards the income tax has to be actual and has to be made before making addition towards the future prospects.

5. The payment of House Rent Allowance made to an employee would be treated as tax free. Normally, this amount is spent for the purpose of providing housing to the deceased employee and to the members of his family.

6. On this principle, the loss of dependency comes to `46,80,475/-

(29,616/- x 12 - 12,500 (tax) + 30% x 3/4 x14).

7. On adding a sum of `25,000/- towards loss of love and affection and `10,000/- each towards loss of consortium, loss to estate and funeral expenses, the overall compensation comes to `47,35,475/-.

8. The compensation is thus enhanced from `39,35,800/- to ` 47,35,475/-.

9. The enhanced compensation of `7,99,675/- shall carry interest @ 7.5% per annum from the date of filing of the Petition till its deposit with the Claims Tribunal.

10. Respondent No.3 National Insurance Company Limited is directed to deposit the enhanced compensation along with interest with the Claims Tribunal within six weeks.

11. Out of the enhanced compensation, a sum of `2,00,000/- along with proportionate interest shall be payable to the Fourth Appellant. Rest of the amount along with proportionate interest shall enure for the benefit of the First Appellant.

12. The amount payable to the Fourth Appellant shall be held in fixed deposit in equal proportion for a period of two years and four years.

13. The amount payable to the First Appellant shall be held in fixed deposit for a period of two years, four years and six years in equal proportion.

14. The Appeal is allowed in above terms.

(G.P. MITTAL) JUDGE MAY 22, 2012 vk